If the Discount Rate on a Bond Is 7% and the Expected

question 16

Multiple Choice

If the discount rate on a bond is 7% and the expected payment in year 1 is $952.50,calculate the price of the bond.

• A)$1,050
• B)$985
• C)$890
• D)$935

---

Definitions:

Military Boot Camp

A rigorous training program designed to physically and mentally prepare recruits for military service.

Resocialization

Resocialization is the process by which individuals undergo major changes in their identity by adopting new norms and values, often within a total institution.

Primitive Personality

Describes a basic or unsophisticated behavior pattern in individuals, often driven by innate drives or early developmental stages, without the influence of modern societal norms.

Freud's Term

A reference to concepts or terminology introduced by Sigmund Freud, the founder of psychoanalysis, such as the unconscious mind, ego, id, and superego.